1.8 Banking Networks

In addition to the card payment networks operated by the card schemes, banks offer their customers options for transferring money between banks and into the bank accounts of other customers.

When running a card programme, offering banking services to your customers enables you to reach potentially unbanked customers and provide additional options for making and taking payments using the banking networks. If you do not have a banking licence, your issuer bank may be able to offer this service. Alternatively, an Agency Banking service provides an option to accept payments on behalf of your customers.

The main banking networks and systems are described below:

1.8.1 SWIFT

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a member-owned cooperative that provides safe and secure electronic payments for its members (large financial organisations, such as banks). There are over 11,000 global SWIFT member institutions. SWIFT works by assigning each member institution a unique ID code that identifies the bank name, country, city and branch.

1.8.2 BACS

Bacs Payment Schemes Limited (BACS) is an electronic system that is used in the UK to make payments directly from one bank account to another. BACS is mainly used for Direct Debits and direct credits from organisations. Transactions are cleared within 2-3 business days.

1.8.3 Faster Payments

Faster Payments is a UK scheme that enables payments such as one-off payments and standing orders to move quickly and securely between UK bank accounts, often clearing within 1-2 hours.

1.8.4 CHAPS

The Clearing House Automated Payment System is a real-time gross settlement payment system used for sterling transactions in the UK. CHAPS is an interbank money transfer system that runs through the SWIFT network. It's typically reserved for one-off, high-value payments that need to be sent and received on the same day. Transactions are cleared within a few hours.

1.8.5 SEPA payments

The Single Euro Payments Area (SEPA) enables customers to make electronic euro payments via credit transfer and direct debit to anywhere in the European Union, as well as a number of non-EU countries, in a fast, safe and efficient way.